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Dice the onions into a small dice, ¼-in to ½-in.
dice your bacon into the same size.
Toss the diced onion and butter into a saute pan on medium heat.
Sweat the onions until just translucent, about 5 minutes.
Set the sauteed onions aside in a bowl.
In the same pan, add the bacon and cook until just done.
Drain the bacon and set it aside.
Deglaze the pan with bourbon.
Add balsamic and red wine vinegar to the pan.
Add back the onions and bacon.
Add the brown sugar and stir.
Keep an eye on it, stirring every 5 minutes. Add water if it starts to dry out.
Caramelize the onions for about 45 minutes until they are a deep rich brown color.